Arcos Dorados Holding Inc (ARCO) Faces a Growth Slowdown

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Moreover, Arcos has had to deal with some competition to its business model. Late last year, Burger King Worldwide Inc (NYSE:BKW) finally allowed a multinational joint venture to go forward to develop Central American markets. If that deal spreads into South America, as well, it could pose a more unified threat to Arcos Dorados Holding Inc (NYSE:ARCO).

Still, in assessing Arcos Dorados’ report, you shouldn’t fall prey to too much pessimism about the growth opportunities in the fast-food franchisee’s home markets. Instead, watch for where the company sees the best prospects for the future, and see how it plans to make the most of those opportunities. After its share-price plunge, Arcos Dorados Holding Inc (NYSE:ARCO) stock could soar if it can get its growth back on track.

The article Arcos Dorados Faces a Growth Slowdown originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Burger King Worldwide and McDonald’s. The Motley Fool owns shares of Arcos Dorados and McDonald’s.

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